Once again, it was indications of business improvements anticipated down the road served as the catalyst for the gains.

"Channel checks and (a) recent Morgan Stanley CIO survey indicate stabilization in the North American enterprise networking market," Stix wrote in a research note.

Stix believes enterprise spending is likely to be stimulated by the Federal Reserve.

"History shows that network spending is correlated to GDP growth with slightly over 30 percent of the changes in network spending growth driven by changes in global GDP growth," Stix said.

Generally, owning Cisco stock after a second Fed rate cut has been a safe bet, Stix added, but he noted that he had never seen fundamentals deteriorate as severely as they did in the first quarter. With the latest rate cut, he thinks many enterprises may revive their spending plans but that they may not affect service provider spending.

Yet, while positive data points concerning North American enterprise networking say "own" the stock, Stix said he's tried every which way but "still can't get there" on a valuation basis.

"We do not enjoy continually playing the role of wet blanket on Cisco, but if there is one thing we have learned from the recent pullback in this industry is that regardless of momentum, valuation is paramount at the end," Stix told clients.

Wet blanket? Hardly. Even as Stix stayed on the sidelines by maintaining a "neutral" rating over the valuation concerns, Cisco shares sizzled, rising $2.20 to close at $20 on heavy volume Wednesday.

But it isn't just valuation that's keeping Stix cautious in the face of improving news because, he said, most of the improvements are indicated only in the North American enterprise networking market, which represents only about one-third of Cisco's business.

"We continue to view the service provider networking equipment business as difficult," Stix told clients. Stix estimates that this business also represents about 33 percent of Cisco's overall operations.

International enterprise, which makes for the final one-third of Cisco's business, also has shown signs of weakness, especially in Europe, Stix said.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information.
All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only.
Intraday data delayed at least 15 minutes or per exchange requirements.